Senate Bill 0754c1
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 1998 CS for SB 754
By the Committee on Governmental Reform and Oversight and
Senator Williams
302-2090A-98
1 A bill to be entitled
2 An act relating to retirement; creating the
3 Florida Retirement Benefit Study Commission;
4 providing for membership; providing powers and
5 duties of the commission; requiring reports;
6 providing for staffing of the commission;
7 providing an effective date.
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9 WHEREAS, pursuant to chapter 97-296, Laws of Florida,
10 the Workforce 2000 Study Commission completed a comprehensive
11 study comparing employee benefits in the public and private
12 sectors, and
13 WHEREAS, the appropriate application of a
14 business-sector plan in the public sector might enable a more
15 efficient use of public tax dollars while providing additional
16 choices for the workforce, and
17 WHEREAS, the initiative to create an efficient,
18 innovative workforce in the public sector can be accomplished
19 through a review of all of the components of public-employee
20 compensation, and
21 WHEREAS, the proper relationship of salary and benefit
22 compensation is a critical issue in personnel administration
23 policies in the public sector, NOW, THEREFORE,
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25 Be It Enacted by the Legislature of the State of Florida:
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27 Section 1. (1) There is created the Florida
28 Retirement Benefit Study Commission for the purpose of
29 advising the Legislature and the Governor on measures in the
30 formulation and implementation of an innovative, efficient
31 retirement program.
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 1998 CS for SB 754
302-2090A-98
1 (a) The commission shall consist of 19 members, as
2 follows:
3 1. Two members appointed by the President of the
4 Senate, one representing the majority party and one
5 representing the minority party;
6 2. Two members appointed by the Speaker of the House
7 of Representatives, one representing the majority party and
8 one representing the minority party;
9 3. The Governor shall appoint the following commission
10 members based upon the recommendations of each of the
11 respective employer or employee member organizations:
12 a. Two members representing the financial services
13 industry;
14 b. One member representing the Division of Retirement;
15 c. One member representing the Department of
16 Management Services;
17 d. One member representing the State Board of
18 Administration;
19 e. Two members representing municipality members of
20 the Florida Retirement System, one representing the employer,
21 and one representing nonmanagerial, nonsupervisory employees;
22 f. Two members representing counties, one representing
23 the employer and one representing nonmanagerial,
24 nonsupervisory employees;
25 g. Two members representing special district members
26 of the Florida Retirement System, one representing the
27 employer, and one representing nonmanagerial, nonsupervisory
28 employees;
29 h. Two representatives of school boards, one
30 representing the employer and one representing nonmanagerial,
31 nonsupervisory employees; and
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 1998 CS for SB 754
302-2090A-98
1 i. Two representatives of state employees, one
2 representing managerial/supervisory employees, and one
3 representing nonmanagerial/nonsupervisory employees.
4 (2) It is the duty of the commission to:
5 (a) Review existing defined benefit and defined
6 contribution pension plans, taking into consideration:
7 1. The proper relationship of employer and employee
8 contributions to any alternate plan;
9 2. Any effects on the existing retirement plan
10 resulting from implementation of a new retirement plan,
11 including, but not limited to:
12 a. Demographic factors;
13 b. Geographic factors;
14 c. Vesting rights and portability options;
15 d. Other factors influencing the demand for either
16 program; and
17 e. The allocation of unfunded actuarial liabilities.
18 (b) Recommend and address:
19 1. To what extent employers are responsible for
20 educating employees regarding the differences in the two
21 plans, and regarding their investment choices;
22 2. Program administration and its cost; and
23 3. The offering of plans independently, or as a group.
24 (3) The commission shall make its recommendation in an
25 official report, adopted by the commission and transmitted to
26 the Governor, the President of the Senate, and the Speaker of
27 the House of Representatives by January 1, 1999.
28 (4) Commission members shall be appointed by August 1,
29 1998, and shall convene to organize immediately after the
30 appointments have been completed.
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 1998 CS for SB 754
302-2090A-98
1 (5) Members of the commission shall serve without
2 compensation. Members of the commission shall be entitled to
3 receive reimbursement for travel and per diem as provided in
4 section 112.061, Florida Statutes, while carrying out official
5 business of the commission.
6 (6) The commission shall hold meetings within the
7 state when deemed necessary.
8 Section 2. The Division of Retirement shall furnish
9 staff services to the commission.
10 Section 3. This act shall take effect upon becoming a
11 law.
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13 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
14 Senate Bill 754
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16 The committee substitute creates the Florida Retirement
Benefit Study Commission consisting of 19 members.
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The commission is responsible for reviewing defined benefit
18 and defined contribution plans in order to establish the
proper balance of employer and employee contribution in
19 establishing a new retirement plan.
20 The commission is required to recommend and address an
employer's obligation, if any, to educate employees regarding
21 the differences in optional plans and their investment
choices.
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